7. Successful Small Business – Effective Marketing? Prospects on the Food Market for a Small Company

Kandikó, József

Successful small companies concentrate their marketing strategy on satisfying the specific requirements of market niches which are unprofitable for big concerns. It is a complicated task on the market of common consumer goods – like the food market – because it is difficult to find the right buyer segment among the large number of costumers. It is more difficult to choose the adequate distribution and communication channels. The Darnó-Hús (Darnó Meat) – situated in the north-west of Hungary near the Austrian and the Slovakian borders – also faces this problem. Firstly, they do not choose between traditional local food and functional foods, so they obviously aim at two niches. Secondly, small well-branded bakery shops and big supermarkets can be found among the company’s sales points. Furthermore, these sales points are geographically not concentrated. This small company cannot afford to spend much on widespread media communication, so its brand name is not well-known enough to get good product placement locations in the stores. As the SWOT-analysis, which was carried out with the collaboration of the management, points out, there is no unity in the choice between the offensive and defensive strategies. The internal factors of the company, such as high-quality products and excellent professional team, which is flexible enough to fulfil the specific requirements, would assign the company a stronger market position, however, the company’s management does not have adequate marketing tools to achieve a higher penetration into the consumer market. After twenty years in operation, they have to make a decision about the next stage of development. Actually before they start to improve their production capacity, the management has to define their market more precisely. To reach the targeted market niche effectively, more effective branding, clear – emotional and rational – positioning in communication, and adequate selling placement are needed.

DOI: 10.20494/TM/3/2/7

The Hungarian Journal of Nutrition Marketing. 2016. 3 (2) 91-104.

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